Tax deduction under fire for 'McMansions':
To add to the mortgage meltdown miseries, the credit panic, the plunging home sales and the rising foreclosures, here's a new worry: a proposed cutoff of mortgage-interest tax deductions for houses with more than 3,000 square feet.
One of Capitol Hill's most experienced and most powerful legislators is drafting a "carbon tax" bill that would do precisely that. The chairman of the House Energy and Commerce Committee, John D. Dingell (D-Mich.), expects to introduce comprehensive climate-change legislation when Congress returns next month.
Besides imposing hefty new federal taxes on gasoline, the forthcoming bill would, in Dingell's words, seek to "remove the mortgage interest deduction on McMansions -- homes over 3,000 square feet." Dingell said he recognizes that such a proposal will spark much criticism, but he also said it is essential to reducing carbon emissions by 60 percent to 80 percent by 2050.
It's certainly fair. Why should taxpayers subsidize excess consumption by the affluent?
Of course, it would destroy the real estate industry as it crushes prices for 3000+ square foot homes and has follow-on effects on smaller homes. This would restore some much-needed sanity to real estate prices.
Democrats could absolutely forget about ever again getting donations from the real estate, mortgage, home-building, and home furnishings industries.
I'm starting to like these Democrats. A new direction for America indeed!